The Ultimate First Home Buyer Guide

The Ultimate First Home Buyer Guide

How to Buy Your First Home in Victoria Without Losing Your Mind 🏡😂

Buying your first home is thrilling… and terrifying. It’s a mix of excitement, stress, and the occasional “what did I just get myself into?!” moment. But don’t worry — we’ve got your back. This guide will walk you through schemes, deposits, mortgages, and the whole process of buying your first home in Victoria (valid for 2025). Think of it as your roadmap — with a few jokes and emojis thrown in for sanity.

🧱 Step 1: Understand Your Deposit Options

Gone are the days when you needed a 20% deposit to get your dream home. Victoria now has a range of state and federal schemes to help you get your foot in the door without selling a kidney.

Victorian State Schemes

First Home Owner Grant (FHOG)

  • 💰 Amount: $10,000

  • 🏡 Eligibility: First-time buyers purchasing or building a new home valued at $750,000 or less.

  • ✅ Requirement: The home must be new, never sold, leased, or occupied.

  • This grant is perfect if you’re trying to cover some upfront costs and get that first step in the property market.

Victorian Homebuyer Fund (Shared Equity Scheme)

  • 🏦 Deposit: As little as 5%

  • 🤝 Government Contribution: Up to 25% of the purchase price in exchange for a share in the property

  • 💡 Benefit: Reduces your mortgage and eliminates the need for Lenders Mortgage Insurance (LMI)

  • ✨ Special: Aboriginal and Torres Strait Islander participants can access a 3.5% deposit and up to 35% shared equity.

Stamp Duty Concessions / Exemptions

  • 🏷️ Homes up to $600,000: Stamp duty abolished

  • 🏷️ Homes $600,000–$750,000: Tapered concessions apply

  • 💡 Off-the-plan properties: Extra concessions may apply for eligible first-home buyers.

Australian Federal Schemes

First Home Guarantee

  • 🏡 Purpose: Helps first home buyers (or buyers who haven’t owned a property in 10+ years) purchase a new or existing home with a deposit as low as 5%

  • 📈 Places Available: 35,000 per year

  • ✅ Benefit: You can get into the market sooner without saving a massive deposit

Family Home Guarantee

  • 👩‍👧 Purpose: Supports eligible single parents or legal guardians with at least one dependent child

  • 💰 Deposit: As little as 2%

  • 📊 Places Available: 5,000 per year

  • 💡 Benefit: Re-enter the property market or buy your first home with minimal upfront costs

Regional First Home Buyer Guarantee

  • 🌾 Purpose: Supports first home buyers in regional areas

  • 💰 Deposit: As little as 5%

  • 📊 Places Available: 10,000 per year

These federal schemes are perfect for anyone struggling to save a big deposit but ready to step onto the property ladder.

💡 Don’t Forget About Your Mortgage Type

Grants and schemes get you through the front door, but your mortgage is what keeps the lights on. A bad loan can cost you tens of thousands.

  • Fixed vs Variable Rates

    • Fixed: Predictable repayments, but less flexibility.

    • Variable: Can drop (yay!) or rise (ouch) depending on interest rates.

  • Loan Terms

    • 25–30 years is standard.

    • Longer = smaller repayments but more interest overall.

    • Shorter = bigger repayments but faster freedom.

  • Offset Accounts & Redraws

    • Offset = your savings reduce the interest you pay.

    • Redraw = stash extra repayments, but still be able to pull them back out later.

💡 Pro Tip: Don’t just chase the lowest rate you see in an ad. Compare fees, flexibility, and how long you plan to stay in the property.

💰 Step 2: Budgeting Like a Pro

Before you fall in love with your dream home, take a realistic look at your finances:

  • Deposit: Know what you have and what schemes you can access

  • Monthly Repayments: Don’t forget mortgage, insurance, utilities, and groceries

  • Unexpected Costs: Maintenance, repairs, and that mysterious “I need new curtains” expense

💡 Pro Tip: Use online mortgage calculators and add a buffer — nobody wants to realize they’re living on instant noodles by day 10.

🏠 Step 3: Location, Location, Location

Victoria is full of options. Think about:

  • Family-friendly suburbs: Carrum Downs has space and value

  • Coastal living: Frankston offers lifestyle and community vibes

  • Regional areas: Great for affordability and federal scheme eligibility

Also, consider commute times, amenities, and lifestyle needs. And yes, check where the best coffee shops are ☕ — because life is too short for bad lattes.

📝 Step 4: The Application Process

  • Gather proof of identity, income verification, and bank statements

  • Apply for relevant schemes and grants

  • Get pre-approval for your mortgage before house hunting

  • Consult with a mortgage broker if you’re unsure

Get pre-approval so you know your budget before bidding. Then layer in your grant/guarantee applications to strengthen your position

💡 Pro Tip: Don’t panic at the paperwork — it’s less scary than it looks, and snacks help.

👀 Step 5: House Hunting Like a Boss

  • Look beyond paint colors and furniture staging

  • Check for structural issues, plumbing, and electrics

  • Trust your gut — a squeaky floor isn’t the end of the world, but a dodgy roof might be

  • Bring a checklist (or a parent who loves pointing things out 😅)

😂 Fun Reminder: “Must-have” doesn’t include a unicorn stable… at least not yet.

💸 Step 6: Making an Offer

  • Research market value and comparable sales

  • Make a fair, realistic offer

  • Include conditions such as building inspections and finance approval

💡 Tip: Negotiation isn’t scary if you know your numbers — and your real estate agent has your back.

🚚 Step 7: Settlement & Moving Day

  • Book removalists (or bribe friends with pizza)

  • Connect your utilities and internet

  • Do a final inspection before handover

  • Celebrate responsibly — you’ve earned it! 🎉

✨ Step 8: Enjoy Your Home

Owning a home is equal parts responsibility and joy. You’ll mow the lawn more than you want, but you’ll also build equity, security, and maybe even wealth.

And yes, that first Sunday morning coffee in your own backyard tastes better. ☕🏡

📞 Thinking About Your Next Move? Let’s Chat!

At Us Real Estate, we know buying a home isn’t just bricks and mortar — it’s about lifestyle, timing, and smart strategy. Whether you’re upsizing in Carrum Downs, chasing the coastal vibe in Frankston, or exploring the wider south-east, we’re here to make the process smooth (and maybe a little fun).

📊 Local Tip: Carrum Downs is great for families, while Frankston is buzzing for coastal living. Knowing your suburb mix helps you succeed.

📞 Ready to step into the market? Let’s chat about the best way to position your property — or land your dream home — while conditions are in your favour.

Contact Us Today:
John Lewis – 0423 487 266 | [email protected]
Karen Day – 0490 242 303 | [email protected]

✨ At Us Real Estate, it’s not just about results — it’s about getting you there with confidence (and a smile). 😄